Tips for Selling Your Home in a Buyer's Market
The economic news is not good. The inventory of homes is rising and people are worried about keeping their jobs. Despite this, homes are selling and the market has not stopped. In the Ithaca area we are lucky to have solid local lenders and employers. What it does mean is that sellers need to work with experienced agents who have been through tough markets before and know what to advices, what to do and how to do it!
If you want your property to sell then you need to fully accept what needs to be done to make your home a great value and position it well in the existing inventory of homes on the market.
1. Pricing is always important. Now it is even more so. Houses that are going to sell need to be priced BELOW "market Value" The problem with setting market value is that we are looking at past sale history. Things have changed and prices will continue to adjust. In some price ranges it is difficult to even find any sold comparables... just lots of houses "for sale". If your home is priced 10 percent above market value fewer than 25% of buyers will consider it. If your home is priced 10 percent below market value 75% of buyers will consider your home. In this market you can't afford to price yourself out of having buyers even consider your home.
2. Offer incentives. If there are specific problems like old worn carpet or rooms in need of fresh paint offer an allowance up front so buyers know they will be able to take care of the negative features that might keep them from buying. If a potential buyer knows this upfront, they might be able to overlook the unattractive carpet or other problems that they notice immediately upon entering the house. Or, offer to include appliances or other items not ordinarily included with the home.. This type of offer will be especially enticing to first-time buyers who are putting most - if not all - of their available cash into their down payment and closing costs.
3. Offer to pay some of the nonrecurring closing costs - the loan appraisal, loan points, credit report, title insurance, and property inspections. This can be a major motivation to cash-strapped buyers; these costs usually run about 3 to 5 percent of the cost of the house. Depending on your market and budget situations, you may offer to pay part or all of the costs.
4. Get a professional home inspection before you put your house on the market. Nothing will end your sale quicker than a buyer's inspector finding a major problem during the inspection process. Even if you reach agreement with the buyer on who will pay for the repair work - or if you agree to pay all the repairs - the fact that the buyer has to wait for the repairs, the delay and inconvenience could diminish their enthusiasm, and even cause them to break the deal, especially if there are plenty of other comparable houses on the market.
5. Be flexible. When you receive an offer and the buyer wants to move in sooner than you'll be ready, make plans to stay in other accommodations until your new place is ready. A month or two of inconvenience is worth it. Many buyers are looking for more than price. Convenience is important to them!
6. Create good curb appeal. A home buyer's first impression is extremely important.. The moment they pull up to the curb, they'll make an instant judgment. Be sure it is a positive one. The front landscaping, condition of the exterior of the home and the front entrance are very important It is a good idea to touch up pain or replace the front door for a positive entry experience.
7. Make sure your home is clean and decluttered. Focus on entry areas, bathrooms and kitchens. If your countertops are covered with stuff or you have lots of knickknacks start packing and storing them.
8. Keep your home light, neutral and depersonalized. The point is to make sure the buyers feel that they can relate to the house and not feel that it is someone else's home. If you have lots of family photos everywhere it is usually a good idea to put some of them away.
9. Make sure your home is light, bright and odor-free. Be sure there are no lingering pet, food or smoke odors. Set out some fresh flowers. Turn on some light music. Let the light in. Open blinds and curtains so plenty of light illuminates the home's interior. You should make sure there are lights on or buy higher wattage bulbs to make sure it is bright and inviting.
10. Keep on top of what is happening in the market. If new listings are coming on or other sellers are reducing prices you need to know this and take the appropriate action. You'll want to talk to your agent about the current inventory of homes on the market and how long homes are staying on the market in your neighborhood. The time to reduce your price is when there are still buyers in the market. If you are constantly above the "correct price" for your home the potential buyers who should be seeing it won't be.
Most of all relax. Your home will sell and for the best possible terms if you take an intelligent approach to the process!
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